NCDOR Business Recovery Grant Program

Application Deadline: January 31, 2022.

The Business Recovery Grant Program will issue a one-time payment to an eligible North Carolina business that experienced a significant economic loss due to COVID-19. The application period closes January 31, 2022. 

Two types of grants will be available to an eligible business that suffered an economic loss of at least 20 percent during the pandemic:

• A hospitality grant will be available to an eligible arts, entertainment, and recreation business, as well as eligible accommodation and food service business such as a hotel, restaurant, and bar (NAICS codes 71 and 72).
• A reimbursement grant will be available to an eligible business not classified in NAICS Code 71 and 72 that did not receive funding from other relief programs including Paycheck Protection Program, COVID-19 Job Retention Grant, and EIDL Advance.

Eligibility

To Receive a Hospitality Grant

• A business must be classified in NAICS code 71 or 72
• A business must have suffered an economic loss of at least 20% (Calculated using gross receipts reported on North Carolina Sales and Use Tax Return and IRS Form 1065)
• A business must be subject to North Carolina income tax

To Receive a Reimbursement Grant 

• A business is not classified in NAICS code 71 or 72
• A business did not receive relief from other relief programs including Paycheck Protection Program, COVID-19 Job Retention Grant, and EIDL Advance
• A business must have suffered an economic loss of at least 20% (Calculated using gross receipts reported on North Carolina Sales and Use Tax Return and IRS Form 1065)
• A business must be subject to North Carolina income tax

The grant amount is a percentage of the economic loss demonstrated by the eligible business or $500,000, whichever is less. Your economic loss is determined based on the amount your gross receipts in North Carolina were reduced from the period March 1, 2019 through February 29, 2020 (“Pre-COVID Period”) to the period March 1, 2020 through February 28, 2021 (“COVID Period”). 

For most applicants, gross receipts are the gross receipts reported on Line 1 of Form E-500, Sales and Use Tax Return (“Form E-500”). However, if the applicant did not report gross receipts on Line 1 of Form E-500, gross receipts are the sum of the receipts reported on Lines 4-8 of Form E-500. A partnership that filed a federal Form 1065, US Partnership Return of Income (“Form 1065”), may also include gross receipts reported on Line 1a of Form 1065 that meet both of the following criteria: 1) the gross receipts were not reported on Form E-500 and 2) the receipts are for transactions apportioned to North Carolina.

Grant amounts will be determined at the conclusion of the application period. NCDOR will reduce grant amounts if the total amount of grants requested exceeds the maximum amount of funds authorized for the Business Recovery Grant by the state of North Carolina.  The application period closes on January 31, 2022. All payments will be made by check, mailed to the address provided by the respective business once the amounts are determined after the application period closes.

Application Procedure

1. Read the eligibility requirements 
2. If you are eligible to apply, the information you will need to apply includes:

If the business is a sole proprietorship:

• Proprietor’s: name, SSN, mailing address, and contact phone number
• Sales and use tax account ID or IDs
• NAICS Code
• Whether the applicant received an award amount (see Section I, question 8 from the FAQs) 
• Gross receipts reported on Line 1 of Form E-500, or if Line 1 is blank, the receipts reported on Lines 4-8, for the following periods:
  • March 1, 2019 – February 29, 2020
  • March 1, 2020 – February 28, 2021

If the business is not a sole proprietorship:

• Business’ legal name, FEIN, mailing address, and contact phone number
• If applicable, sales and use tax account ID or IDs
• NAICS Code
• Whether the applicant received an award amount (see Section I, question 8 from the FAQs)
• If applicable, Gross receipts reported on Line 1 of Form E-500, or if Line 1 is blank, the receipts reported on Lines 4-8, for the following periods:
  • March 1, 2019 – February 29, 2020
  • March 1, 2020 – February 28, 2021
• If applicable, gross receipts reported on federal Form 1065, Line 1a, that were not reported on Form E-500 AND are apportioned to North Carolina for the following periods:
  • March 1, 2019 – February 29, 2020
  • March 1, 2020 – February 28, 2021
• If applicable, a copy of page 1 of federal Form 1065

Official Website: NCDOR Business Recovery Grant Program